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En+ Group, HUAWEI, CDS, LANIT and the Government of the Irkutsk Region to create one of Asia&acute;s largest data centers

Beijing, September 3, 2015. En+ Group, HUAWEI, Centrin Data Systems, LANIT and the Government of the Irkutsk Region have signed a framework agreement on creation of one of Asia's largest data centers and related infrastructure in the Irkutsk Region. The agreement was signed in Beijing in the presence of the President of the Russian Federation Vladimir Putin and the President of the People's Republic of China Xi Jinping.

The project involves constructing a data center with a capacity of up to 1,800 racks by 2018, to be expanded to 8,000 racks by 2024, which amounts to approximately 1% of the market volume in countries covered by the Silk Road Economic Belt project. The data center will provide high technology IT services on the Russian and Asian markets, primarily in China, including cloud services, high-performance computing and big data analysis systems. The parties have agreed to consider the possibility of engaging educational and research institutions in Irkutsk to assist in creating software and applications for using the data center's infrastructure in areas such as vehicle tracking systems, remote sensing and climate monitoring systems, personalized health care, whole genome sequencing, etc. It is expected that up to 80% of the data center's capacity will be allocated for servicing Asian customers, including as part of cooperation projects of the Eurasian Economic Union and the Silk Road Economic Belt, as well as the BRICS partnership.

En+ Group will supply the data center with the required amount of electricity generated by the company's power plants in the Irkutsk Region (with electricity accounting for up to 50% of the cost of operation of a data center) and will provide the premises for the data center. HUAWEI will supply equipment and will help attract customers from Asia. Centrin Data Systems will be the first Chinese anchor customer of the data center. LANIT will act as a co-investor in the creation of the data center and as a systems integrator; it will also assist in attracting Russian customers. In its turn, the Government of the Irkutsk Region will act as a co-investor in the infrastructure for the data center and will provide government support for the project under resolutions adopted in Russia with regard to accelerated development of Eastern Siberia.

The project to create a data center in Irkutsk has been approved by the Intergovernmental Russian-Chinese Commission on Investment Cooperation chaired by the First Deputy Prime Minister of Russia Igor Shuvalov and the Vice Premier of the State Council of the People's Republic of China Zhang Gaoli; the project has also been included in the BRICS Road Map for Trade, Economic and Investment Cooperation until 2020.

The cost of the first stage of the project to create the data center is provisionally estimated at USD 55 mln, while the second stage is expected to cost over USD 300 mln. It is expected that the project will be financed using the partners' own funds, as well as project finance to be provided by Chinese banks and funds.

"Creation of the data center marks a new stage in cooperation between En+ and Chinese companies. Cheap electricity combined with the cold climate of Eastern Siberia and, consequently, lower energy consumption for cooling will make the data center competitive in the fast-growing Asian market. The project will promote economic growth in the Irkutsk Region and further strengthen the relationship between Russia and China," commented Maxim Sokov, CEO of En+ Group.

"This is Huawei's largest project in Russia in the sphere of data centers. We are happy to have an opportunity to apply our knowledge and global expertise in the Russian market: Huawei has built over 400 data centers in more than 100 countries worldwide. Over 12,000 of the company's engineers are engaged in R&D in the sphere of IT. Huawei has 658 patents in the sphere of cloud computing and over 400 patents in the field of data storage," said Wan Biao, CEO of Huawei Russia.

"The Irkutsk Region and China have a tremendous potential for expansion of cooperation. Organization of joint operations using foreign equipment and highly efficient technologies is a promising area. The Irkutsk Region Development Corporation will participate in the project to build the data center on behalf of the Region; we are also considering provision of state support for the project," emphasized Sergey Eroschenko, acting governor of the Irkutsk Region.

Information on project participants:

En+ Group (www.enplus.ru) is a leading Russian industrial group comprising companies in the metals, mining and energy sectors, as well as strategically related industries. En+ Group holds a controlling stake in UC RUSAL, the world's largest aluminum producer; it also owns Russia's largest independent power company, EuroSibEnergo, and SMR, a producer of ferromolybdenum, as well as large coal deposits and logistics business. The core assets and new projects of En+ Group are located in Eastern Siberia. In 2014, the company’s consolidated revenue totaled USD 11.9 bln.

Huawei (www.huawei.com/ru) is a leading global information and communications technology (ICT) solutions provider with a vision to enrich life through communication. Through our dedication to customer-centric innovation and strong partnerships, we have achieved impressive results in the development of carrier networks, terminal solutions and cloud computing systems. Huawei's 170,000 employees around the world are committed to creating maximum value for telecom carriers, enterprises and consumers by providing them with competitive solutions and services. Our innovative products, solutions and services are used by one-third of the world’s population in over 170 countries. Founded in 1987, Huawei is an entirely employee-owned private company.

LANIT Group of Companies (www.lanit.ru) is Russia’s largest system integrator and leading partner of over 250 of the world’s leading IT hardware and software vendors. LANIT's companies employ a stable and highly professional team of 8,000 employees. Over 1,600 specialists hold expertise certificates from the world's leading hardware and software vendors. The group's companies provide a full range of IT services, which it constantly expands by implementing the most popular cutting-edge technologies and solutions.